Connecticut western news., 1887-11-30
PANIC IN MINING STOCKS.
The Bottom Knocked Out of the
 Gogebic Iron Mine.

panic has seized the holders of what are known as Gogebic iron mining securities The Gogebic iron range is 8 strip of land running some twenty miles through the northern DOT tion of Michigan and Wisconsin, about twenty miles below the shore of Lake Superior. It's development was begun about two years ago, and during the present year something like 1,25O, 900 tons of high grade hematic ore were shipped from there. This Is the ore that is nsed for the Besseme- processes of iron mak- ing, and Is valuable because 1t has hitherto been scarce. Quantities of it ksve been ini- ported annually. The finding of this ore started up speculation in the mining proip- erty and this has been followed by the widest kind of wi dcat operations.
 Some fifty mining companies have been or ganized on the range, though there are not above fifteen shipping mines. These com- panies are none of them organized on less capitalization than million dollars, and some of them are capitalized at two millions and even more. The total capitalization of the several companies will reach STO,OOO, ,OOO Many of the mines exist merely on paper Others were organized under leases of prop erty or on the promised payment of royalty for orc produced. The nominal values of tho shares were made low, in some instances only $l0, and ranging from that up to $50. With such small par value it easy to work ofr large quantities of tho stock upon nmall in- yestors at 30 to 90 per cent. for cash. Thou sands of dollars worth of this stock found its way tuc uhHus O1 ana tfhueb- men in Milwaukee, Chicago, Cleveland and in the small towns surrounding these cities.
 One year ago Moore, Benjamin & Co.,, the heaviest firm of spectators and promoters on the range opened a branch office in New York and through heavy advertising large sales were made to persons there and throughout out New England. Offices for the sale of the stocks were opened in Boston about the same time. About SSC00,fO0 to Sl0O0o 900 of stockswere sold in New York and New England. gan to hear of great scheme for the consolida- tion of mines on this range. Ex-Senator Stoph- en w. Dorsey was tho principal figure in the manipulation. It was given out that through Moore, Benjamin & Co.,, he and a syndicate Of wealthy gentlemen purchased or secured an option to purchase fourteen of the best mines on the range, which were to be opcr- ated by one company. Ex-Sec3ctary William Windom, Of Minnesota, was chosen chair man of the company, and Jesse R. Grant as Secretary. The Lake Superior Consolidated as 1t was known, held an agreement to pur- chase properties at certain prices for the stocks which were then ruling in the market Almost immediately the prices began to de- cline. They can now be bought for a third of the prices then qu ted. The Lake Superior Consolidated people under these circumstan- ces declared themselves unable to 90 on with their option, and rcconveyed the mines to their original purchasers
 Moore, Benjamin & Co. have made an as- signment which. taken in connection with other depressing causes, has knocked the bottom all out of the Gogebic stock market, and sent holders of these securities rushing around to realize on them at any price.